EMCOR to Report Q2 Earnings: What to Expect in This Season?

EMCOR Group, Inc. EME is scheduled to report second-quarter 2025 results on July 31, before the opening bell.

In the last reported quarter, EMCOR reported earnings per share (EPS) of $5.41, exceeding expectations by 18.4% and increasing 30%. Revenue for the quarter came in at $3.87 billion, reflecting 12.7% year-over-year growth, and beat the Zacks Consensus Estimate by 1.9%. The integration of Miller Electric contributed significantly to growth, while the company's adjusted operating margin expanded to 8.5%, supported by prefabrication and virtual design capabilities. The company's backlog (Remaining Performance Obligations, or RPOs) grew 28.1% year over year to $11.8 billion.

This specialty contracting services provider surpassed earnings estimates in each of the trailing four quarters, with an average of 22.8%.

How Are Estimates Placed for EME Stock?

The Zacks Consensus Estimate for the second-quarter EPS has remained unchanged at $5.68 over the past 30 days. The estimated figure indicates 8.2% growth from the year-ago reported figure. The consensus mark for revenues is $4.1 billion, suggesting a 11.9% year-over-year increase. 

For 2025, EME is expected to witness 12.7% growth in revenues and a 9.6% growth in EPS from a year ago.

EMCOR Group, Inc. Price and EPS Surprise

EMCOR Group, Inc. price-eps-surprise | EMCOR Group, Inc. Quote

Factors Influencing EMCOR’s Q2 Performance

Despite persistent inflationary and uncertain economic conditions, EMCOR’s revenues and earnings are expected to have increased in the second quarter of 2024. The company has been benefiting from increased project flows from high-tech manufacturing and network and communications market sectors due to solid demand for semiconductor and data center construction projects.

The company remains confident in its ability to sustain momentum, driven by a solid backlog of $11.8 billion (as of the first quarter of 2025-end) and continued demand in key growth sectors such as data centers, semiconductor manufacturing, healthcare and industrial services. These tailwinds are likely to have aided its top line in the to-be-reported quarter.

The Electrical Construction segment continues to benefit from surging demand in data centers, with 85% of network and communications backlog tied to this vertical. EMCOR is active across 16–17 geographies for electrical work and expanding mechanically as well, with rising demand for cooling infrastructure driven by AI data centers. The Mechanical Construction segment also shows strength in healthcare, institutional, and water/wastewater markets. With the Miller Electric acquisition contributing both backlog and execution strength, EMCOR anticipates continued revenue and margin performance in these construction segments. 

For the U.S. Building Services segment, the second quarter of 2025 is expected to show improved performance relative to the first quarter as mechanical services continue to grow and site-based service headwinds begin to moderate. The segment is shifting toward higher-margin technician-based services, which now make up a growing majority of the revenue mix. EMCOR expects mechanical services strength to help offset softness in site-based contracts through the rest of the year.

For Industrial Services, this segment faced weather-related disruptions in the first quarter, but performance is expected to improve in the second quarter as the turnaround season resumes. EMCOR also expects credit loss provisions to normalize, which should support a margin recovery from the first-quarter lows.

For the U.K. Building Services segment, stable performance is expected to continue in the second quarter. Mobilization costs affected first-quarter margins, but these are one-time in nature, and project demand remains healthy.

Overall, EMCOR anticipates another strong quarter in the second quarter of 2025, led by Construction segments, a rebound in Industrial Services, and margin resilience across the board. Data center projects, tight cost control, and a mix shift toward high-margin mechanical services are likely to support second-quarter margins.

What the Zacks Model Unveils for EMCOR

Our proven model does not conclusively predict an earnings beat for EMCOR for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) for this to happen. This is not the case here, as you will see below.

Earnings ESP: EME has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.

Primoris Services Corporation PRIM has an Earnings ESP of +5.33% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company’s earnings beat estimates in each of the last four quarters, the average surprise being 44.8%. Primoris Services’ earnings for the second quarter of 2025 are expected to increase 1.9%.

Armstrong World Industries, Inc. AWI currently has an Earnings ESP of +1.71% and a Zacks Rank of 3.

The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 6.5%. Armstrong World’s earnings for the second quarter of 2025 are expected to increase 8%.

Masco MAS currently has an Earnings ESP of +2.61% and a Zacks Rank of 3.

The company’s earnings beat estimates in two of the trailing four quarters, missed in one and met on one occasion, the average negative surprise being 0.2%. Masco’s earnings for the second quarter of 2025 are expected to decrease 10%.

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This article originally published on Zacks Investment Research (zacks.com).

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